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EPISODE · Apr 19, 2025 · 21 MIN

Bonds in Turmoil

from SKEPTIC’S GUIDE TO INVESTING · host Steve Davenport, Clement Miller

Please text and tell us what you likeSteve and Clem examine how bonds have shifted from reliable safe havens to potentially risky investments in today's economic landscape, challenging conventional wisdom about treasuries as risk-free assets.• Bonds traditionally provided safety and income, but inflation and economic uncertainty have changed this dynamic• Bond vigilantes reacting to tariff announcements revealed hidden vulnerabilities in bond portfolios• Long-duration treasuries (20-30 years) make little sense for individual investors despite their institutional utility• Corporate bonds from companies with strong balance sheets may offer better safety than government treasuries• Municipal bonds provide tax advantages and allow investors to leverage local knowledge• Current inflation concerns suggest shorter bond durations (2-3 years vs. market average of 6 years)• "All that is riskless is not US Treasuries" – questioning the fundamental assumption of risk-free government debt• Rising rates can significantly impact bond values through duration risk (5-year duration means ~5% loss per 1% rate increase)Share and like what you see, and if you have questions or ideas, please reach out and contact us. Straight Talk for All - Nonsense for NonePlease check out our other podcasts:https://skepticsguidetoinvesting.buzzsprout.comDisclaimer - These podcasts are not intended as investment advice. Individuals please consult your own investment, tax and legal advisors. They provide these insights for educational purposes only.

Episode metadata supplied by the publisher feed · Published Apr 19, 2025

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Please text and tell us what you like Steve and Clem examine how bonds have shifted from reliable safe havens to potentially risky investments in today's economic landscape, challenging conventional wisdom about treasuries as risk-free assets. • Bonds traditionally provided safety and income, but inflation and economic uncertainty have changed this dynamic • Bond vigilantes reacting to tariff announcements revealed hidden vulnerabilities in bond portfolios • Long-duration treasuries (20-30 y...

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